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On July 31, 2017, Sunland Company paid $2,850,000 to acquire all
of the common stock of Conchita Incorporated, which became a
division of Sunland. Conchita reported the following balance sheet
at the time of the acquisition. Current assets $750,000 Current
liabilities $560,000 Noncurrent assets 2,550,000 Long-term
liabilities 460,000 Total assets $3,300,000 Stockholders’ equity
2,280,000 Total liabilities and stockholders’ equity $3,300,000 It
was determined at the date of the purchase that the fair value of
the identifiable net assets of Conchita...
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On July 31, 2019, Mexico Company paid to acquire all of the common stock of Conchita Incorporated, which became a division of Mexico Conchita reported the following balance sheet at the time of the acquisition Current assets Noncurrent assets $3,500,000 $800,000 Current liabilities $2,700,000 Long-term liabilities $3,500,000 |Stockholders' equity $600,000 $500,000 $2,400,000 Total liabilities and stockholders' equity$3,500,000 Total assets It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchit $2,850,000...
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On July 31, 2020, Carla Vista Company paid $3,000,000 to acquire
all of the common stock of Conchita Incorporated, which became a
division (a reporting unit) of Carla Vista. Conchita reported the
following balance sheet at the time of the acquisition. Current
assets $710,000 Current liabilities $600,000 Noncurrent assets
2,700,000 Long-term liabilities 500,000 Total assets $3,410,000
Stockholders’ equity 2,310,000 Total liabilities and stockholders’
equity $3,410,000 It was determined at the date of the purchase
that the fair value of the...
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On July 31, 2020, Wildhorse Company paid $2,850,000 to acquire
all of the common stock of Conchita Incorporated, which became a
division (a reporting unit) of Wildhorse. Conchita reported the
following balance sheet at the time of the acquisition.
Current assets
$750,000
Current liabilities
$600,000
Noncurrent assets
2,550,000
Long-term liabilities
500,000
Total assets
$3,300,000
Stockholders’ equity
2,200,000
Total liabilities and stockholders’ equity
$3,300,000
It was determined at the date of the purchase that the fair value
of the identifiable net...
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Compute the amount of goodwill recognized, if any, on July 31,
2020.
Determine the impairment loss, if any, to be recorded on
December 31, 2020
Assume that fair value of the Conchita Division is $1,736,000
instead of $1,850,000. Determine the impairment loss, if any, to be
recorded on December 31, 2020.
Prepare the journal entry to record the impairment loss, if any,
and indicate where the loss would be reported in the income
statement.
This loss will be reported in...
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Compute the amount of goodwill recognized, if any, on July 31,
2020. (If answer is zero, do not leave answer field
blank. Enter 0 for the amount.)
Find:
Goodwill recognized on july 31, 2020 =
Imparement loss to be recorded december 31, 2020 =
Assuming fair value of conchita division is 1,460,000 instead of
1,850,000, the new impairment loss is =
Question 4 On July 31, 2020, Blossom Company paid $2,900,000 to acquire all of the common stock of Conchita...
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(b) The company's statement of financial position as of December 31, 2015 Be sure to give account titles and amounts, and briefly justify your presentation. 56 P12-5 (Goodwill, Impairment) On July 31, 2015, Mexico Company paid $3,000,000 to acquire all of the common stock of Conchita Incorporated, which became a division (cash-generating unit) of Mexico. Conchita reported the following statement of financial position at the time of the acquisition. Non-current assets Current assets $2,700,000 800,000 $3,500,000 Equity Non-current liabilities Current...
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35. Goodwill, impairment. On May 3, 2018, Armstrong Company paid $3,500,000 to acquire all of the common stock of Hall Corporation, which became a division of Armstrong. Hall reported the following balance sheet at the time of the acquisition: $ 900,000 2,700,000 Current liabilities Long-term liabilities Stockholders' equity Total liabilities and S 600,000 500,000 2,500,000 Current assets Noncurrent assets Total assets stockholders' equity $3,600,000 It was determined at the date of the purchase that the fair value of the identifiable...
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On May 31, 2016, Columbanus Company paid $2,000,000 to acquire
all of the common stock of Mistor Corporation, which became a
division of Columbanus. Mistor reported the following balance sheet
at the time of the acquisition:
It was determined at the date of the purchase that the fair value
of the identifiable net assets of Mistor was $1,875,000. At
December 31, 2016, Mistor reports the following balance sheet
information:
The recorded amount for Mistor's net assets (excluding goodwill) is
the...
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In late July 2017, Concord Ltd., a private company, paid $2.20 million to acquire all of the net assets of Riverbed Corp., which then became a division of Concord, Riverbed reported the following statement of financial position at the time of acquisition: Current assets Non-current assets 415,000 Current liabilities 1,335,000 300,000 265,000 Shareholders' equity 1,185,000 $1,750,000 Long-term liabilities $1,750,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Riverbed was...
On July 31, 2019, Mexico Company paid to acquire all of the common stock of Conchita Incorporated, which became a division of Mexico Conchita reported the following balance sheet at the time of the acquisition Current assets Noncurrent assets $3,500,000 $800,000 Current liabilities $2,700,000 Long-term liabilities $3,500,000 |Stockholders' equity $600,000 $500,000 $2,400,000 Total liabilities and stockholders' equity$3,500,000 Total assets It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchit $2,850,000...
Compute the amount of goodwill recognized, if any, on July 31,
2020.
Determine the impairment loss, if any, to be recorded on
December 31, 2020
Assume that fair value of the Conchita Division is $1,736,000
instead of $1,850,000. Determine the impairment loss, if any, to be
recorded on December 31, 2020.
Prepare the journal entry to record the impairment loss, if any,
and indicate where the loss would be reported in the income
statement.
This loss will be reported in...
Compute the amount of goodwill recognized, if any, on July 31,
2020. (If answer is zero, do not leave answer field
blank. Enter 0 for the amount.)
Find:
Goodwill recognized on july 31, 2020 =
Imparement loss to be recorded december 31, 2020 =
Assuming fair value of conchita division is 1,460,000 instead of
1,850,000, the new impairment loss is =
Question 4 On July 31, 2020, Blossom Company paid $2,900,000 to acquire all of the common stock of Conchita...
(b) The company's statement of financial position as of December 31, 2015 Be sure to give account titles and amounts, and briefly justify your presentation. 56 P12-5 (Goodwill, Impairment) On July 31, 2015, Mexico Company paid $3,000,000 to acquire all of the common stock of Conchita Incorporated, which became a division (cash-generating unit) of Mexico. Conchita reported the following statement of financial position at the time of the acquisition. Non-current assets Current assets $2,700,000 800,000 $3,500,000 Equity Non-current liabilities Current...
35. Goodwill, impairment. On May 3, 2018, Armstrong Company paid $3,500,000 to acquire all of the common stock of Hall Corporation, which became a division of Armstrong. Hall reported the following balance sheet at the time of the acquisition: $ 900,000 2,700,000 Current liabilities Long-term liabilities Stockholders' equity Total liabilities and S 600,000 500,000 2,500,000 Current assets Noncurrent assets Total assets stockholders' equity $3,600,000 It was determined at the date of the purchase that the fair value of the identifiable...
In late July 2017, Concord Ltd., a private company, paid $2.20 million to acquire all of the net assets of Riverbed Corp., which then became a division of Concord, Riverbed reported the following statement of financial position at the time of acquisition: Current assets Non-current assets 415,000 Current liabilities 1,335,000 300,000 265,000 Shareholders' equity 1,185,000 $1,750,000 Long-term liabilities $1,750,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Riverbed was...